1.1                          A bill for an act 
  1.2             relating to construction; giving the state building 
  1.3             official final authority for interpreting the State 
  1.4             Building Code and prescribing its enforcement; 
  1.5             requiring municipalities to submit annual reports on 
  1.6             construction-related fees; regulating 
  1.7             construction-related fees; prohibiting municipalities 
  1.8             from requiring waivers of rights as a condition for 
  1.9             issuance of a construction-related permit; amending 
  1.10            Minnesota Statutes 2000, sections 15.99, subdivision 
  1.11            3; 16B.61, subdivision 1; 16B.62, subdivision 1; 
  1.12            16B.63, by adding a subdivision; 16B.67; 326.90, 
  1.13            subdivision 1; and 462.353, subdivision 4; proposing 
  1.14            coding for new law in Minnesota Statutes, chapters 
  1.15            462; and 471. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 2000, section 15.99, 
  1.18  subdivision 3, is amended to read: 
  1.19     Subd. 3.  [APPLICATION; EXTENSIONS.] (a) The time limit in 
  1.20  subdivision 2 begins upon the agency's receipt of a written 
  1.21  request containing all information required by law or by a 
  1.22  previously adopted rule, ordinance, or policy of the agency.  If 
  1.23  an agency receives a written request that does not contain all 
  1.24  required information or is otherwise incomplete, the 60-day 
  1.25  limit starts over only if the agency sends written notice within 
  1.26  ten business days of receipt of the request telling the 
  1.27  requester what information is missing or needed to complete the 
  1.28  request. 
  1.29     (b) If an action relating to zoning, septic systems, or 
  1.30  expansion of the metropolitan urban service area requires the 
  2.1   approval of more than one state agency in the executive branch, 
  2.2   the 60-day period in subdivision 2 begins to run for all 
  2.3   executive branch agencies on the day a request containing all 
  2.4   required information is received by one state agency.  The 
  2.5   agency receiving the request must forward copies to other state 
  2.6   agencies whose approval is required. 
  2.7      (c) An agency response meets the 60-day time limit if the 
  2.8   agency can document that the response was sent within 60 days of 
  2.9   receipt of the written request. 
  2.10     (d) The time limit in subdivision 2 is extended if a state 
  2.11  statute, federal law, or court order requires a process to occur 
  2.12  before the agency acts on the request, and the time periods 
  2.13  prescribed in the state statute, federal law, or court order 
  2.14  make it impossible to act on the request within 60 days.  In 
  2.15  cases described in this paragraph, the deadline is extended to 
  2.16  60 days after completion of the last process required in the 
  2.17  applicable statute, law, or order.  Final approval of an agency 
  2.18  receiving a request is not considered a process for purposes of 
  2.19  this paragraph. 
  2.20     (e) The time limit in subdivision 2 is extended if:  (1) a 
  2.21  request submitted to a state agency requires prior approval of a 
  2.22  federal agency; or (2) an application submitted to a city, 
  2.23  county, town, school district, metropolitan or regional entity, 
  2.24  or other political subdivision requires prior approval of a 
  2.25  state or federal agency.  In cases described in this paragraph, 
  2.26  the deadline for agency action is extended to 60 days after the 
  2.27  required prior approval is granted. 
  2.28     (f) An agency may extend the time limit in subdivision 2 
  2.29  before the end of the initial 60-day period by providing written 
  2.30  notice of the extension to the applicant.  The notification must 
  2.31  state the reasons for the extension and its anticipated length, 
  2.32  which may not exceed 60 days unless approved by the 
  2.33  applicant.  If an agency fails to provide a written notice of 
  2.34  the reasons for the extension, the time limit is not extended. 
  2.35     Sec. 2.  Minnesota Statutes 2000, section 16B.61, 
  2.36  subdivision 1, is amended to read: 
  3.1      Subdivision 1.  [ADOPTION OF CODE.] Subject to sections 
  3.2   16B.59 to 16B.75, the commissioner shall by rule establish a 
  3.3   code of standards for the construction, reconstruction, 
  3.4   alteration, and repair of buildings, governing matters of 
  3.5   structural materials, design and construction, fire protection, 
  3.6   health, sanitation, and safety, including design and 
  3.7   construction standards regarding heat loss control, 
  3.8   illumination, and climate control.  The code must conform 
  3.9   insofar as practicable to model building codes generally 
  3.10  accepted and in use throughout the United States, including a 
  3.11  code for building conservation.  In the preparation of the code, 
  3.12  consideration must be given to the existing statewide specialty 
  3.13  codes presently in use in the state.  Model codes with necessary 
  3.14  modifications and statewide specialty codes may be adopted by 
  3.15  reference.  The code must be based on the application of 
  3.16  scientific principles, approved tests, and professional 
  3.17  judgment.  To the extent possible, the code must be adopted in 
  3.18  terms of desired results instead of the means of achieving those 
  3.19  results, avoiding wherever possible the incorporation of 
  3.20  specifications of particular methods or materials.  To that end 
  3.21  the code must encourage the use of new methods and new 
  3.22  materials.  Except as otherwise provided in sections 16B.59 to 
  3.23  16B.75, the commissioner shall administer and enforce the 
  3.24  provisions of those sections.  
  3.25     The commissioner shall develop rules addressing the plan 
  3.26  review fee assessed to similar buildings without significant 
  3.27  modifications including provisions for use of building systems 
  3.28  as specified in the industrial/modular program specified in 
  3.29  section 16B.75.  Additional plan review fees associated with 
  3.30  similar plans must be based on costs commensurate with the 
  3.31  direct and indirect costs of the service. 
  3.32     Sec. 3.  Minnesota Statutes 2000, section 16B.62, 
  3.33  subdivision 1, is amended to read: 
  3.34     Subdivision 1.  [MUNICIPAL ENFORCEMENT.] The State Building 
  3.35  Code applies statewide and supersedes the building code of any 
  3.36  municipality.  The State Building Code does not apply to 
  4.1   agricultural buildings except with respect to state inspections 
  4.2   required or rulemaking authorized by sections 103F.141, 216C.19, 
  4.3   subdivision 8, and 326.244.  All municipalities shall adopt and 
  4.4   enforce the State Building Code with respect to new construction 
  4.5   within their respective jurisdictions.  
  4.6      If a city has adopted or is enforcing the State Building 
  4.7   Code on June 3, 1977, or determines by ordinance after that date 
  4.8   to undertake enforcement, it shall enforce the code within the 
  4.9   city.  A city may by ordinance extend the enforcement of the 
  4.10  code to contiguous unincorporated territory not more than two 
  4.11  miles distant from its corporate limits in any direction.  Where 
  4.12  two or more noncontiguous cities which have elected to enforce 
  4.13  the code have boundaries less than four miles apart, each is 
  4.14  authorized to enforce the code on its side of a line equidistant 
  4.15  between them.  Once enforcement authority is extended 
  4.16  extraterritorially by ordinance, the authority may continue to 
  4.17  be exercised in the designated territory even though another 
  4.18  city less than four miles distant later elects to enforce the 
  4.19  code.  After the extension, the city may enforce the code in the 
  4.20  designated area to the same extent as if the property were 
  4.21  situated within its corporate limits.  No ordinance adopted by a 
  4.22  city or development agreement entered into by a city may contain 
  4.23  a provision more restrictive or stringent than a comparable 
  4.24  provision of the State Building Code. 
  4.25     A city which, on June 3, 1977, had not adopted the code may 
  4.26  not commence enforcement of the code within or outside of its 
  4.27  jurisdiction until it has provided written notice to the 
  4.28  commissioner, the county auditor, and the town clerk of each 
  4.29  town in which it intends to enforce the code.  A public hearing 
  4.30  on the proposed enforcement must be held not less than 30 days 
  4.31  after the notice has been provided.  Enforcement of the code by 
  4.32  the city outside of its jurisdiction commences on the first day 
  4.33  of January in the year following the notice and hearing.  
  4.34     Municipalities may provide for the issuance of permits, 
  4.35  inspection, and enforcement within their jurisdictions by means 
  4.36  which are convenient, and lawful, including by means of 
  5.1   contracts with other municipalities pursuant to section 471.59, 
  5.2   and with qualified individuals.  The other municipalities or 
  5.3   qualified individuals may be reimbursed by retention or 
  5.4   remission of some or all of the building permit fee collected or 
  5.5   by other means.  In areas of the state where inspection and 
  5.6   enforcement is unavailable from qualified employees of 
  5.7   municipalities, the commissioner shall train and designate 
  5.8   individuals available to carry out inspection and enforcement on 
  5.9   a fee basis.  
  5.10     Sec. 4.  Minnesota Statutes 2000, section 16B.63, is 
  5.11  amended by adding a subdivision to read: 
  5.12     Subd. 5.  [INTERPRETATIVE AUTHORITY.] To achieve uniform 
  5.13  and consistent application of the State Building Code, the state 
  5.14  building official has final interpretative authority relating to 
  5.15  all aspects of the State Building Code under the jurisdiction of 
  5.16  the commissioner of administration.  A final interpretative 
  5.17  committee composed of seven members in the appropriate field, 
  5.18  such as building, mechanical, elevators, accessibility, energy, 
  5.19  or manufactured structures, shall review requests for final 
  5.20  interpretations relating to that field.  The state building 
  5.21  official must establish procedures for membership of the 
  5.22  interpretative committees.  The appropriate committee shall 
  5.23  review the request and make a recommendation to the state 
  5.24  building official for the final interpretation within 30 days of 
  5.25  the request.  Final interpretations must be adopted as rules as 
  5.26  a part of the State Building Code.  Municipal building officials 
  5.27  shall administer all final interpretations issued by the state 
  5.28  building official as part of the State Building Code.  A final 
  5.29  interpretation may be appealed within 30 days of its issuance to 
  5.30  the commissioner under section 16B.67. 
  5.31     Sec. 5.  Minnesota Statutes 2000, section 16B.67, is 
  5.32  amended to read: 
  5.33     16B.67 [APPEALS.] 
  5.34     A person aggrieved by the final decision of any 
  5.35  municipality as to the application of the code or imposition of 
  5.36  a fee under section 462.353, including any rules adopted under 
  6.1   sections 471.465 to 471.469, may, within 180 days of the 
  6.2   decision, appeal to the commissioner.  Appellant shall submit a 
  6.3   nonrefundable fee of $70, payable to the commissioner, with the 
  6.4   request for appeal.  An appeal must be heard as a contested case 
  6.5   under chapter 14.  The commissioner shall submit written 
  6.6   findings to the parties.  The party not prevailing shall pay the 
  6.7   costs of the contested case hearing, including fees charged by 
  6.8   the office of administrative hearings and the expense of 
  6.9   transcript preparation.  Costs under this section do not include 
  6.10  attorney fees.  Any person aggrieved by a ruling of the 
  6.11  commissioner may appeal in accordance with chapter 14.  For the 
  6.12  purpose of this section "any person aggrieved" includes the 
  6.13  council on disability.  No fee or costs shall be required when 
  6.14  the council on disability is the appellant.  
  6.15     Sec. 6.  Minnesota Statutes 2000, section 326.90, 
  6.16  subdivision 1, is amended to read: 
  6.17     Subdivision 1.  [LOCAL LICENSE PROHIBITED.] Except as 
  6.18  provided in sections 326.991 and 326.90, subdivision 2, and 
  6.19  326.991, political subdivision may not require a person licensed 
  6.20  under sections 326.83 to 326.991 to also be licensed or pay a 
  6.21  registration or other fee not directly related to licensure or 
  6.22  building permits under any ordinance, law, rule, or regulation 
  6.23  of the political subdivision.  This section does not prohibit 
  6.24  charges for building permits or other charges not directly 
  6.25  related to licensure. 
  6.26     Sec. 7.  Minnesota Statutes 2000, section 462.353, 
  6.27  subdivision 4, is amended to read: 
  6.28     Subd. 4.  [FEES.] A municipality may prescribe fees 
  6.29  sufficient to defray the costs incurred by it in reviewing, 
  6.30  investigating, and administering an application for an amendment 
  6.31  to an official control established pursuant to sections 462.351 
  6.32  to 462.364 or an application for a permit or other approval 
  6.33  required under an official control established pursuant to those 
  6.34  sections.  Fees as prescribed shall must be by ordinance. and 
  6.35  must be fair, reasonable, and proportionate to the actual cost 
  6.36  of the service for which the fee is imposed.  A municipality 
  7.1   shall adopt management and accounting procedures to ensure that 
  7.2   fees are maintained and used only for the purpose for which they 
  7.3   are collected.  
  7.4      If a dispute arises over a fee imposed by a municipality, 
  7.5   the amount of the fee must be deposited and held in escrow, and 
  7.6   the person aggrieved by the fee may appeal under section 
  7.7   16B.67.  The project may proceed as if the fee had been paid, 
  7.8   pending a decision on the appeal. 
  7.9      Sec. 8.  [462.3531] [WAIVER OF RIGHTS; PROHIBITION.] 
  7.10     A local government unit must not require a contractor, 
  7.11  builder, or developer of property to waive a right possessed by 
  7.12  the contractor, builder, or developer as a condition of 
  7.13  receiving any approval for the development or construction of a 
  7.14  property. 
  7.15     Sec. 9.  [471.6966] [ANNUAL REPORT.] 
  7.16     Each municipality shall annually report to the state 
  7.17  auditor, in a format prescribed by the state auditor, all 
  7.18  construction- and development-related fees collected by the 
  7.19  municipality from developers, builders, and subcontractors.  The 
  7.20  report must include: 
  7.21     (1) the number and valuation of units for which fees were 
  7.22  paid; 
  7.23     (2) the amount of building permit fees, plan review fees, 
  7.24  administrative fees, engineering fees, infrastructure fees, and 
  7.25  other construction- and development-related fees; and 
  7.26     (3) the expenses associated with the municipal activities 
  7.27  for which fees were collected.